Billionaire Tilman Fertitta Increases Wynn Investment

Tilman Fertitta, the billionaire owner of Landry’s and the Golden Nugget casino chain, has continued to increase his investment in Wynn Resorts during a period of economic uncertainty and declining stock prices. This move has sparked renewed speculation about whether Fertitta, who already holds the largest single stake in Wynn, might be positioning himself for a larger role in the gaming giant. However, Fertitta’s potential confirmation as the next U.S. ambassador to Italy and San Marino complicates the situation, raising questions about whether he will take a more hands-on approach in the company or step back from the gaming world entirely.
Fertitta’s Growing Stake in Wynn

Fertitta’s most recent purchase of 400,000 additional shares of Wynn Resorts between April 4 and April 7, 2024, was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) on April 8. With this latest acquisition, Fertitta now holds approximately 13 million shares of Wynn, making him the largest individual shareholder of the company. This increase in his stake follows Fertitta’s initial foray into Wynn in November 2022, followed by his emergence as the largest shareholder in November 2024.

The timing of his purchase is notable. Wynn’s stock, like many others in the gaming sector, has taken a significant hit in recent months. As of April 4, Wynn’s shares plummeted to a low of $66.20, a sharp decline from the $98.32 per share the stock reached just 10 days later, on April 14. The downturn in stock prices, attributed to broader economic uncertainty in the United States and concerns over the government’s fiscal policies, created a prime opportunity for Fertitta to expand his holdings in the company.

Fertitta’s Passive Approach to Wynn

Despite increasing his stake, Fertitta has maintained a passive position in Wynn, consistently denying that he intends to take a more active role in the company. He has stated that his investments in Wynn are driven by personal financial interests, rather than a desire to influence the company’s direction. However, this has not stopped speculation that Fertitta might leverage his growing ownership to shape Wynn’s future. His position as CEO and owner of Landry’s, which operates the Golden Nugget brand, adds fuel to the fire, with some industry observers concerned about potential conflicts of interest and the prospect of him steering Wynn toward his business interests.

Fertitta has repeatedly shot down these rumors, affirming that he has no plans to interfere in Wynn’s management. Yet, as a major shareholder, he retains the ability to influence the company’s strategic direction, even if he remains formally detached from its day-to-day operations.
The Ambassador Appointment: A Complicating Factor

The possibility of Fertitta becoming the U.S. ambassador to Italy and San Marino has complicated matters. In a letter to the U.S. Department of State, Fertitta confirmed that, if appointed to the ambassadorship, he would step down from his leadership role at Landry’s and the company’s associated holdings. This commitment, combined with the fact that the U.S. Senate has yet to hold a confirmation hearing for Fertitta’s potential appointment, means his future at Landry’s and Wynn remains uncertain.

While it’s not uncommon for U.S. ambassadors to resign from active business roles to avoid conflicts of interest, Fertitta’s situation is unique. If confirmed, his ambassadorial duties would likely preclude him from taking a hands-on role in Wynn’s operations. Despite his significant investment, his involvement with Wynn would likely remain passive.

Even if he does become the next ambassador, Fertitta intends to maintain ownership of Landry’s, which operates a range of businesses, including the Golden Nugget casinos in states such as Mississippi, Nevada, and Pennsylvania. However, he has no interest in the Golden Nugget online casino brand, which he sold to DraftKings in 2022. Fertitta’s continued ownership of Landry’s, alongside his larger stake in Wynn, highlights the complexities of balancing multiple business interests with a diplomatic post.

I’m only investing in Wynn for personal gain, not to interfere in its operations.

Conclusion: A Wait-and-See Type of Situation

For now, Fertitta remains a largely passive investor in Wynn Resorts, holding a significant number of shares but not actively influencing its operations. His recent stock purchases during a market downturn may eventually pay off, but it could take some time before he sees a substantial return on his investment.

The question of whether Fertitta will take a more involved role in Wynn’s future depends on several factors, not least of which is his potential confirmation as U.S. ambassador. If appointed, his ambassadorship would likely limit his ability to participate in the gaming industry at the level that some have speculated. As a result, it seems that Fertitta’s influence over Wynn may remain indirect, despite his sizable stake in the company.

For now, the world watches as Fertitta navigates the intersection of his business interests and potential diplomatic duties, with the future of his involvement in Wynn Resorts still very much in the air.